B1 and B2 are both members of the pit crew for a famous team in Formula One autoracing. B1 takes 4 seconds to refuel the car and 2 seconds to replace a tire. B2 takes 6 seconds to refuel the car and 2 seconds to replace a tire. a) Create an opportunity costs table. (Remember: 1 output/resource to get the OC). Do not make a big table. b) Can B1 and B2 benefit for specialization and trade? Explain the basis of specialization and trade. Maximum of 2 sentences. c) Who has an absolute advantage in the refuelling the car and replacing a tire? Based from the given, explain briefly. d) Who has a comparative advantage in the refuelling the car and replacing a tire? Based from the opportunity cost table, explain briefly. e) If both members decided to trade with each other in terms of their roles, which role will each one give the other? Based from the opportunity cost table, explain briefly.

B1 and B2 are both members of the pit crew for a famous team in Formula One autoracing. B1 takes 4 seconds to refuel the car and 2 seconds to replace a tire. B2 takes 6 seconds to refuel the car and 2 seconds to replace a tire. a) Create an opportunity costs table. (Remember: 1 output/resource to get the OC). Do not make a big table. b) Can B1 and B2 benefit for specialization and trade? Explain the basis of specialization and trade. Maximum of 2 sentences. c) Who has an absolute advantage in the refuelling the car and replacing a tire? Based from the given, explain briefly. d) Who has a comparative advantage in the refuelling the car and replacing a tire? Based from the opportunity cost table, explain briefly. e) If both members decided to trade with each other in terms of their roles, which role will each one give the other? Based from the opportunity cost table, explain briefly.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 31P: Review the numbers for Canada and Venezuela from Table 33.12 which describes how many barrels of oil...

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